Adams and Nancy are in business together, providing financial advice and accounting services. Due to their different experience, Adams handled the financial advice and Nancy looked after the accounting clients. Unfortunately, their business has not been performing well.

Adams and Nancy invite their friend Stevie to help with the business. He invested $100,000 into the business, which they called a loan. Stevie was to receive a share in profits at the end of each financial year and would have input into how the business was run.

Following the investment of Stevie, the business begins to improve. Adams purchased an expensive Type-X 10 computer on which to run his financial analysis models. Nancy was furious at the $74,000 price tag and challenges Adams right to purchase the computer without her consent by refusing to authorize payment of the purchase invoice.

Following the purchase of the computer Adams has become increasingly distracted by the new computer and is often careless in the advice he gives to clients. Chris and Meg, two of Adams clients have recently suffered a significant loss as a result of following the careless advice given to them by Adams.

REQUIRED

Who is liable for the loss suffered by Chris and Meg? Explain why and buttress your point or argument with at least three references that are retrievable from google scholar and a reference from Fitzpatrick, J., Symes, C., & Parker, D. (2019). Business and Corporation Law.

In answering this question consider who the partners are and whether the firm is liable for Adams careless advice to Chris and Meg.

Note

Please give a very detailed explanation and if possible you can give a similar case scenario and how it was resolved.

References must be in Harvard style.

The minimum word length required is 800.